On this page, you'll find the basics behind Arcanum

Arcanum is a protocol enabling generation of decentralized ETFs tracking the prices of crypto assets within multipools and unique asset management opportunities for ETF holders.

Arcanum combines two DeFi and TradiFi primitives in one:

  • an ETF tracking the index of a set of assets,

  • a multipool containing crypto assets enabling their instant swaps

Currently, the headliner products of Arcanum are Sharpe Portfolio Index ($SPI) tracking largest crypto assets on Arbitrum using Black-Litterman model (live on Arbitrum), Arbitrum Ecosystem Index ($ARBI) tracking top 5 Arbitrum-native DeFi assets by revenue (live on Arbitrum).

ETFs are easy to generate, access and use as well as advantageous to simply HODL. Multipools, in turn, provide access to a multi asset liquidity with just a single token without dilution or imbalance and augmenting capital efficiency. Due to embedded yield generation strategies in multipools, they become a comprehensive crypto asset manager, empowering users with the benefits of an entire portfolio.

By analogy with other primitives of decentralized finance, such as stablecoins, DEXs, and lending protocols that solve specific problems like fair access to digital currency, exchange of assets without intermediaries or access to borrowed liquidity accordingly, Arcanum is designed with the main goal - effective asset management. Arcanum achieves this goal in a fully decentralized manner.

Arcanum ETFs’ design allows users to utilize an ETF as a trading asset or a store of value while providing access to a multi asset liquidity with just a single token. Every ETF represents a share of the index tracking the assets contained in the multipool. Arcanum’s algorithms constantly identify and update equilibrium shares of the ETF's underlying assets, and incentivize users to perform operations such as minting, burning and swapping in the multipool to bring it to balance and restore the ETF’s peg. Incentivisation comes in two forms - small or extra fees and cashbacks.

Comparing with other asset management protocols

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